Chrysler Group CEO Sergio Marchionne said today the automaker’s two-tier wage structure with the UAW is not viable over the long run and said Chrysler will work to end the pay practice in the next round of contract talks in 2015.
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The two tier wage structure, in and by itself, is not a viable structure upon which to build our industrial footprint,” Marchionne said. “It creates two classes of workers within the plant.”
Marchionne, who is also CEO of Chrysler’s majority owner, Fiat S.p.A., said the practice is undermining efforts by Chrysler and Fiat to “get this organization to work in unison.”
“Fundamentally we need to have one set of wage rates which clearly recognize the participation of our people in the profit generation of our people in the house,” Marchionne told reporters today on a conference call to discuss Chrysler’s $212 million third-quarter net profit.
“It’s totally consistent with the view I expressed with (former UAW President) Ron Gettelfinger at the time and more recently with (UAW President) Bob King,” Marchionne said.
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